The central bank will detail a framework to ensure businesses are properly regulated within its jurisdiction while encouraging business in the ecosystem.
The central bank of Singapore will release plans next month to make the country a hub for bitcoin and other digital assets.Following the contagion outbreak, many companies hid behind the regulatory barriers of Singapore.The country seeks to protect consumers and investors by properly regulating these entities while encouraging businesses within the ecosystem.
The Monetary Authority of Singapore (MAS) will release plans next month detailing guidelines for the country of Singapore to become a hub for bitcoin and other cryptocurrencies, according to a press release from the regulator.
While the country seeks friendly relations with those seeking to operate in the greater cryptocurrency space and become a digital asset hub, much of the release detailed the importance of setting stricter expectations for entities intended on using Singapore as a shield for bad practices. Amid the contagion which has fueled market downtrends these previous months, some of the companies which imploded as a result of falling asset prices cited Singapore as their base of operations.
“In reality, these so-called “Singapore-based” crypto firms have little to do with crypto-related regulation in Singapore,” said Ravi Menon, managing director of the MAS.
In essence, some of the companies which claimed regulatory compliance within Singapore were either not correctly registered, not following MAS guidelines or proper licensing procedures, or altogether ceased management under MAS oversight prior to insolvency, according to the MAS. Companies cited in the report were TerraForm Labs – which publicly allocated a massive treasury sum to bitcoin prior to crashing – and Three Arrows Capital, which more recently fell to market conditions.
Consequently, MAS looks to both encourage business practices within its jurisdiction while also pursuing consumer protections and market conditions. In a forward-looking statement, Menon presented an outlook of what is to come in the upcoming framework to be released at a Green Shoots seminar.
“We will explain our position on cryptocurrencies, stablecoins, blockchains, tokenization, smart contracts, digital assets, etc. – their risks and opportunities; shortcomings and potential,” Menon continued. “We will set out how our developmental and regulatory approaches will work in harmony to achieve the vision of Singapore as an innovative and responsible digital asset hub.”